Business

Ringgit strengthens as U.S. dollar weakens amid end of government shutdown

The US Senate’s 60:40 vote to reopen the government after 41 days of closure would provide relief to markets and public sector workers

Updated 11 months ago · Published on 11 Nov 2025 9:15AM

Ringgit strengthens as U.S. dollar weakens amid end of government shutdown
Local currency gains on renewed investor confidence; economists expect ringgit to hover around RM4.15–RM4.16 - November 11, 2025

THE ringgit extended its upward momentum to open higher today, supported by continued buying interest in the local currency as the US dollar weakened following the reopening of the American government after a prolonged shutdown.

At 8.01am, the ringgit appreciated to 4.1540/4.1660 against the US dollar, compared with Monday’s close of 4.1555/4.1635.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said market sentiment remained positive and expected the US dollar-ringgit pair to trade within the RM4.15 to RM4.16 range throughout the day.

He noted that riskier assets, including equities, rallied overnight amid optimism that the US government shutdown would soon come to an end.

“This has been the longest government shutdown, and it is likely to hurt US economic growth in the final quarter of 2025,” he said. “Disruptions to government services, such as delays in flights and statistical data releases, could, to some degree, strengthen the case for an interest rate cut in December.”

IPPFA Sdn Bhd’s director of investment strategy and country economist Sedek Jantan said the US Senate’s 60:40 vote to reopen the government after 41 days of closure would provide relief to markets and public sector workers, even though broader fiscal issues remain unresolved.

“With agencies set to resume operations, a backlog of economic data is expected to be released in stages,” he said. “The long-delayed September jobs report, originally due on 3 October, should be among the first to be released and will provide key insights into labour market conditions ahead of the Federal Reserve’s policy meeting on 10 December.”

At the opening, the ringgit was also stronger against a basket of major and regional currencies.

It gained against the Japanese yen to 2.6946/2.7026 from 2.6954/2.7008, rose versus the euro to 4.8004/4.8142 from 4.8071/4.8163, and improved against the British pound to 5.4716/5.4875 from 5.4736/5.4842 previously.

Among ASEAN currencies, the ringgit strengthened against the Singapore dollar to 3.1888/3.1982 from 3.1899/3.1963, advanced against the Philippine peso to 7.04/7.07 from 7.05/7.06, and edged up against the Thai baht to 12.8360/12.8819 from 12.8367/12.8670. It was unchanged against the Indonesian rupiah at 249.4/250.2. - November 11, 2025

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